Question: How to obtain 30%+ APR on USDC and earn Sonic points?
➤ Known:
1) Depositing USDC in Silo can earn an APR of 7.3%.
2) Borrowing stS in Silo only incurs an APR of 0.9%.
3) stS is a yield-compounding liquid staking token for S.
4) Providing stS/S LP on Beets can earn an APR of 23.48%.
5) Providing stS/S LP on Shadow can earn up to 37% APR.
6) stS/S can enjoy 8 times the Sonic points.
➤ It can be concluded:
1) By depositing USDC and borrowing stS, a net APR of 7.3% - 0.9% = 6.4% can be obtained.
2) Providing stS/S LP on Beets can earn an LP APR of 23.48% plus a net APR of 6.4%, totaling approximately 29.88% APR.
3) Providing stS/S LP on Shadow can earn up to 37% LP APR plus a net APR of 6.4%, totaling approximately 43.4% APR.
➤ Conclusion:
1) stS, as a yield-compounding liquid staking token for S, has an anchoring relationship with S, thus the risk of decoupling is relatively low.
2) Depositing USDC ensures a guaranteed return while participating in the relatively stable stS/S token pair for lending and borrowing, minimizing the risk of LP mining.
3) In addition, Sonic points can be earned, providing an opportunity for future airdrops.
Answer: Deposit USDC in Silo and borrow stS, then choose to provide stS/S LP on Beets or Shadow to earn higher APR.
Candidate: BitHappy | A DeFi miner!
